OJK Chairman Mahendra Siregar: The Performance Of The Indonesian Financial Sector Is Normalizing At The End Of 2023

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar assessed that Indonesia's financial sector performance will be maintained, and will continue to normalize towards pre-pandemic levels by the end of 2023.

"In general, the performance of the financial services sector is maintained both for future projection trends until the end of this year, it seems that transportation is normalizing towards pre-pandemic levels," Mahendra said in a working meeting (raker) with Commission XI of the DPR RI, in Jakarta, quoted from Antara, Friday, September 1.

Mahendra is optimistic that the stability of the financial services sector will remain stable, supported by strong capital in the financial sector. In the capital market sector, as of August 25, 2023, fundraising was recorded at IDR 172.2 trillion, with IDR 48.11 trillion of which were fundraising or fundraising from 56 new issuers.

Meanwhile, there are still 95 issuers who are conducting public offerings (IPO) with a value of IDR 42.9 trillion. Mahendra also assessed that the strengthening of the performance of the Indonesian financial sector was also supported by the growing trend of the number of investors, which continued to increase by 11.35 million investors as of July 2023.

Furthermore, Mahendra explained that in terms of banking, bank credit risk tends to improve, and the downward trend in COVID-19 restructuring credit will continue until 2024.

As of July 2023, restructuring loans decreased to IDR 339.13 trillion with the number of debtors continuing to decline to 1.44 million. The coverage of Value Loss Reserves (CKPN) was recorded at 29.7 percent.

"We are optimistic that this continued decline until the end of March next year will in turn be covered by the CKPN formed which we hope will continue to increase in the next few months," said Mahendra.